“Criniti (The Necessity of Finance, 2013) interprets the key concepts underlying economic and financial behavior, with an emphasis on personal finance.

Criniti makes frequent references to his previous book as he guides the reader through 218 principles of economics and finance that he finds to be both essential and universally applicable. His claim that “around the 1950s it became formally necessary to create finance, the science of managing wealth for an individual, a group, or an organization” may raise the eyebrows of readers familiar with a longer span of history, but it does allow readers to understand what exactly the author means by “finance.” Most of the principles identified in the book relate to matters of personal finance—spending, saving, retirement—and business operations. Some of the principles Criniti explores are reasonable if somewhat simplistic guidelines: “Always keeping your promises can help you to keep your good reputation.” and “Only give gifts that you can afford to give.” Others require greater leaps of logic or adherence to a profit-driven worldview: “Economic cycles are naturally required wealth adjustments by economic entities.”; “Some people will do anything to deprive you of your wealth.” Some principles merit two pages of explanation, while others are dispatched in a paragraph or two; the explanations are derived more from the author’s understanding of his principles than from empirical evidence or analysis. The principle that “Wealth is attracted to cities,” for instance, is supported by no data, merely the claim that “In general, you will find your greatest opportunities to build wealth in cities versus suburbia or the country.” Although the title suggests an introductory economics course, the readers who will find the greatest value here are those in search of a more philosophical companion for their personal finance handbooks.

A guide to the fundamental principles of building and maintaining personal wealth, relying more on the author’s instinct than on quantitative data.”

“A basic text about financial concepts that strives to elevate finance to the status of a science. Ever since the 2008 recession, the financial world has achieved prominence, if not notoriety. Many casual observers have become more aware of the general financial health of the country, but they may be largely ignorant of relevant financial concepts. Criniti, a professor of finance, investor and former financial consultant, offers a primer written with uncluttered clarity which explains in simple language the difference between finance and economics. He also defines terms such as “financial manager,” “financier,” “financial statements,” “financial planning,” and “risk and return.” For example, investing, writes Criniti, “is the act of currently owning any asset, tangible or intangible, that is not associated with playing any perceived ongoing game of chance and is intended to maximize wealth based on acceptable levels of time and risk.” The author also addresses aspects of finance that other authors tend to overlook; for instance, Criniti points to “a high correlation between finance and health.” Referring to America’s health insurance challenge, he writes that “under the current American healthcare system, the wealthier you are the healthier you could be.” In another chapter, “Finance and the Environment,” Criniti postulates that “[e]nvironmental goals can only be accomplished when more wealth is directed toward them.” Throughout the book, Criniti lobbies for finance to be accepted as a full-fledged science, separate and apart from economics. He even wonders, “Where is the real Nobel Prize in finance? It doesn’t exist unless you call it financial economics.”

A well-crafted work for general readers that could serve as a basic textbook on the fundamentals of finance.”